Nine Survival Rules for Short-Term Trading
1. Learn to wait; contracts are like a game of passing the drum, after high emotions, there will be adjustments, and after panic comes reversal. Use 20% of the opportunity to earn 80% of the profit; this is an irreversible law of the market.
2. Never over-leverage; heavy positions can easily lead to emotional trading, creating a vicious cycle. Losses are normal; the key is mindset and finding new opportunities. To make a profit, first maintain your qualification.
3. Be cautious when buying; do not act impulsively due to a sharp rise. In a big market, there are plenty of opportunities. Assess the indices and emotions to make judgments.
4. Cut losses decisively; if performance is below expectations, make quick decisions and do not waste time on losses; seek new opportunities instead.
5. After a big gain, withdraw funds; large profits often indicate market frenzy, and adjustments are imminent. Withdraw in a timely manner to clear the frenzy, adding color to life.
6. Respect the market; do not make subjective judgments about it. There is no need to stubbornly hold onto a direction that funds have not chosen. Engaging in the direction recognized by the market is the right path.
7. Do not take over after a peak; the market has reached its high, and the game of passing the flower is about to end. Who will be willing to take over tomorrow?
8. Avoid trading in the afternoon; by the time the short-term situation is clear in the early session, the action should have already been taken. Streamline your trades to avoid unnecessary entanglements.
9. Persist in reflection and summarization; failure is not scary, but failing to learn is. Let every failure become the foundation for success, so you can go further and further.